The Islamic Development Bank (IsDB) has agreed to loan $270 million to Turkiye Ihracat Kredisi Bankasi (Turk Eximbank), the Islamic bank announced in a statement on Wednesday.

The loan is to finance Turkish exporting companies and it will be guaranteed by the Treasury.

Turk Eximbank is the official export credit agency of the Turkish government.

“The loan is also the first IsDB intervention in Turkey to support Turkish contractors doing business abroad,” the bank said. “The main beneficiaries of the loan will be the export-oriented Turkish small- and medium-sized enterprises, enabling them to invest in expanding production capacity and to improve the operational productivity levels.”

The bank also said the loan facility will also be used by the Eximbank to finance infrastructure and industrial projects in other IsDB member countries which will be realized by Turkish contractors.

"This is a milestone and win-win transaction in many ways both for Turkey and for the other IsDB members which will benefit from financing for exported materials, equipment and contracting services” Mohammad Jamal Al-Saati, Director of the Country Programs Department at IsDB, said.

Turkey has set an ambitious target to reach by 2023, with the goal of increasing its total exports to $500 billion.

Turkish contractors already operate in more than 100 countries, achieving second place after China in the Top 225 International Contractors List.